Demand for Twenty Dollar Saint Gaudens if Growing

The Twenty Dollar St. Gauden gold coin were minted by the US Mint from 1907 to 1933. They are now considered part of what people call numismatic gold coins or rare gold coins. The design of the $20 Saint Gauden is still renown for its amazing artwork by collectors. Due to the scarcity and the inherent gold value the $20 St. Gauden has potential profits in owning these rare coins.

The Demand for Twenty Dollar Saint Gaudens if Growing

One key driving force that separates the $20 St. Gauden from gold bullion coins like the American Gold Eagle is that production has stopped for Saint Gauden gold coins. The finite number of these gold coins enhances their value beyond the pure gold content.

There are many factors contributing to the demand for rare gold coins like the Twenty Dollar St. Gauden. One major factor is the broad appeal as this gold coin is widely accepted for its value by gold coin collectors and gold buyers looking for a hedge against inflation. Though the $20 St. Gauden is a rare gold coin the supply is large enough to allow the market to buy and sell the coins on a frequent basis. Liquidity is an important factor that makes rare gold coins an attractive buying opportunity.

Besides the rarity factor the Twenty Dollar St. Gauden is also almost pure gold. The gold purity is 0.900 with gold itself having inherent value. The price of gold has never been zero which is not the case from some stocks that have dropped sharply in people's portfolios. Recent increases in the spot price of gold also affects the price of rare gold coins, too.

One major difference between the Twenty Dollar St. Gauden and the American Gold Eagle is that the sale and purchase of American Gold Eagles is recorded with the IRS while Twnety Dollar Saint Gaudens are considered a collection and not subject to these requirements. The owning of rare gold coins is considered a private position in gold.

Rare gold coins like gold bullion coins are seen as a way to preserve wealth. Many of the factors that cause forms of investments like stocks, bonds, and real estate to decrease in value cause gold coins to increase in value. Important to understand that past performance is not a guarantee of future gains though supports the greater understanding of the value of owning rare gold coins.

US Gold Coins: Grading and Value

Among the 100 million gold coins minted pre-1933, a mere 5 percent have found their way to the numismatic coins market. Having survived two meltdowns, in 1834 and 1933, the remaining US gold coin specimens are in high demand in the coins as well as gold markets. Besides high demand and low supply, American gold coins are valued for their high gold content; some series having as much as 90 percent gold composition.

US Gold Coins: Factors Affecting Grading

The primary factor affecting a US gold coin’s grading (and its value) is its design and other elements, such as the image/portrait and mint dates on the coins. The more clearly these are readable and identifiable, the better grading the coin has. Other key factors affecting the grading of US gold coins are:

• The surface: This is a highly sensitive part of a coin, vulnerable to scratches, dents and stains. Even a small nick on Lady Liberty can drastically lower the coin’s grade.
• The luster: This implies the shine of the coin; the better the shine, the higher the grade. Bear in mind that the more hands these coins pass through, the more likely they are to lose their luster and appear dull.

US Gold Coins: Grading Mechanism

US gold coins are typically graded on a 70-point scale by numismatists as well as certified coin grading services. This point system is known as the Sheldon Scale. Note that different descriptions and grading terms may be used by different grading companies. Typically, US gold coins are graded in the following categories:

Abbreviation Description Numerical Grade
P Poor 1
FR/FA Fair 2
AG About Good 3
G Good 4, 6
VG Very Good 8, 10
F Fine 12-15
VF Very Fine 20
XF/EF Extremely Fine 40-45
AU Almost Uncirculated/ About Uncirculated 50-58
UNC/MS Uncirculated/ Mint State 60-70

US gold coins may also be net graded. This form of grading is used for coins that have some issues. For instance, a coin may have an XF grade, but has been scratched or corroded over time. Such a coin may be given a "net" grade, let’s assume VF, to reflect the undesirable problems. Net grading implies that while the coin may technically have an XF grade, its market value is likely to be around the average of a VF graded coin. Net grading is applied on as much as 25 percent of the US gold coins in circulation today.